MONTEPLIER – In the final hour of the last day for candidates to get into this year's election, Republican Scott Milne filed his candidacy for governor Thursday.

"I know it's a long shot," Milne said. "I believe I have the ability to do a better job than Gov. Shumlin."

Milne will try to mount his long-shot candidacy against two-term incumbent Democrat Peter Shumlin, who has already raised more than $1 million for the 2014 election. Milne emerged only in the last couple months as a possible candidate while one Republican after another opted against running.

Milne said "pocketbook" issues — Shumlin's plans for a single-payer, government-run health coverage system and the affordability of Vermont's schools — are the main topics on which he will focus his campaign.

Shumlin, who filed his candidate petitions Monday, welcomed Milne into the race. "It's good for Vermonters," he said of having a challenger.

Milne's last-day entry into the race was the biggest move at the top of Vermont's election ticket, but there were other changes too. Democrat John Bauer pulled the plug on his candidacy for lieutenant governor after he fell short of reaching the $17,500 mark to qualify for public campaign financing.

Progressive Dean Corren, meanwhile, raised $19,283 from 862 Vermont voters to become the state's first candidate to qualify for public financing in a decade. Corren, a former state legislator from Burlington, will challenge two-term incumbent Republican Phil Scott of Berlin.

For Republicans, the biggest relief was to have a candidate for governor, after it appeared the struggling party might leave Shumlin virtually unchallenged. Two other candidates — Emily Peyton of Putney and Steve Berry of Wolcott — filed as Republicans for governor but lack the party's support. Party regulars were glad Milne decided to run.

Milne, 55, of Pomfret is president of his family's Milne Travel Agency. His parents, Don and Marion, were both legislators and his father is clerk of the House in Montpelier. Still, Milne has never won elected office himself.

"He's a much different candidate than we've ever had before," said Sen. Joe Benning, R-Caledonia, the Senate minority leader, who helped Milne collect voter signatures for his filing petition.

Lt. Gov. Scott, the Republican Party's only elected statewide official, said Milne's fresh eyes and business success in a changing industry will be strengths. "I think he has a chance," Scott said, noting this week's upset in the Virginia Republican congressional primary. "A lot of it has to do with timing."

As he turned his petitions in at the Secretary of State's Office late Thursday afternoon, Milne said he made his decision about three weeks ago, though he had to reaffirm it after Republican Randy Brock decided against running this week. Milne had hoped for a primary as a way to gain more attention to the race. "I just wanted to be careful," he said.

On making the filing deadline with less than an hour to go, Milne said, "I'm batting a thousand for getting things done under the legal deadline," in reference to Shumlin missing deadlines for releasing financing plans for single-payer health care.

Milne said he will try to challenge Shumlin on the price tag of single-payer health care, saying he is "extremely suspicious" of the system, though he declined to characterize his stance as flat-out opposed.

Milne said he will also press the issue of education funding. If elected, he said his first priority would be to figure out a more affordable system. He declined to say whether he favors reducing the number of schools in Vermont or what changes he supports, saying he would be more specific later in the campaign.

Milne said he would likely have a campaign kickoff around July 4.

Milne's candidacy pits against each other two native Vermonters who are owners of travel agencies started by their parents. Milne took over the firm his parents started in Barre. Shumlin and his brother took over the student travel company their parents started in Putney.

Scott vs. Corren

Lt. Gov. Scott's re-election campaign might have become more difficult Thursday as Democrat John Bauer dropped out of the race and Progressive Dean Corren qualified for public financing that will give him $200,000 to spend.

Bauer said he was unable to reach the $17,500 fundraising goal from 750 Vermont voters needed to qualify for financing, as he had planned. Without that, he said, "I didn't see a path to winning."

Bauer declined Thursday to detail how much he had raised, but will do so in later campaign finance filings. Bauer fell short of endorsing Corren, but said, "Given the choice between the two of them, I would have to pick Dean."

Bauer's departure means liberal voters are unlikely to be split between him and Corren, raising Corren's chances against Scott.

Corren raised more than required to qualify for public financing, but said it was difficult. "If it seems like we're sure of it every minute, we were not," he said shortly after submitting his paperwork Thursday morning.

Corren will be eligible to receive $200,000 in public financing minus the $19,283 he raised to qualify.

Corren said single-payer health care is the top issue driving him.

"This is a unique and critical time in Vermont's history," Corren said of the opportunity to change health coverage. "If you have people dragging their feet or raising false concerns, then it's going to be that much less likely to happen."

Scott argued Shumlin and the Democratic majority in the Legislature need a skeptic like him to challenge them on health care and other issues. "We need a lieutenant governor who's a bit of a checks and balance," he said.